Could Egypt's Old Rent Law Be Coming to an End?
Parliament is passing around a new draft law which would liberalise rents of non-residential units.
Is it time to say goodbye to Egypt's Old Rent Law? Parliament is passing around a new draft law which would liberalise rents of non-residential units. Prepped by the House of Representatives' Housing Committee, the draft law addresses the old rent law that prevents landowners from raising the cost of rent, particularly when it comes to contracts that have been entered into before 1996.
According to the new draft law, tenants of non-residential units will be given a five-year grace period to make adjustments. Afterwards, they will need to pay five times the value of current rents or face evictions. The value of these rents will increase by 15% every year, over the following four years.
The draft law would only affect non-residential units, so that one uncle who snagged himself a fancy Zamalek apartment and only pays EGP 10 in rent? Yeah, he still gets to live it up over there. That business that set up shop nearby on the other hand? They may need to contact their accountants.